Melbourne

Melbourne lies within the top 10% of areas nationally in terms of population growth performance according to AreaSearch analysis of short and medium-term trends

Based on ABS population updates and AreaSearch validation, the suburb of Melbourne's estimated population is around 73,773 as of Feb 2026. This reflects an increase of 18,832 people since the 2021 Census, which reported a population of 54,941. The change was inferred from AreaSearch's estimate of 72,694 residents after examining June 2024 ABS ERP data release and validated new addresses. This results in a density ratio of 11,194 persons per square kilometer, placing the suburb in the top 10% nationally according to AreaSearch. Melbourne's 34.3% growth since 2021 exceeded national (9.9%) and state averages. Population growth was primarily driven by overseas migration contributing approximately 96.0%.

All drivers including natural growth and interstate migration were positive factors. AreaSearch uses ABS/Geoscience Australia projections for each SA2 area, released in 2024 with a base year of 2022. For areas not covered, they utilise VIC State Government's Regional/LGA projections from 2023 with adjustments made via weighted aggregation to SA2 levels. Growth rates by age group are applied across all areas for years 2032 to 2041. Future trends forecast a significant population increase in the top quartile of national statistical areas. The suburb is expected to expand by 29,509 persons to 2041 based on aggregated SA2-level projections, reflecting an increase of 38.9% over the 17 years.

The level of residential development activity in Melbourne was found to be higher than 90% of real estate markets across the country

Melbourne has received approximately 181 dwelling approvals annually over the past five financial years, totalling around 905 homes. In FY-26 so far, 42 approvals have been recorded. On average, each new dwelling constructed between FY-21 and FY-25 accommodates about 10.2 new residents per year. This suggests that demand is outstripping supply, which can lead to upward pressure on prices and increased competition among buyers.

The average construction cost of new dwellings in Melbourne is around $448,000. In this financial year alone, commercial approvals have reached approximately $1.43 billion, indicating strong local business investment. The majority of residential developments approved are attached dwellings (99%), with detached dwellings making up only 1%.

This trend towards denser development caters to downsizers, investors, and entry-level buyers seeking accessible entry options. Currently, Melbourne has about 243 people per approval, reflecting a transitioning market. By 2041, Melbourne's population is projected to grow by around 28,660 residents, according to the latest AreaSearch quarterly estimate. If development rates continue at their current pace, housing supply may not keep up with population growth, potentially intensifying competition among buyers and supporting stronger price growth.

Melbourne has very high levels of nearby infrastructure activity, ranking in the top 10% nationally

Changes to local infrastructure significantly influence an area's performance. AreaSearch has identified 253 projects likely impacting the area. Notable ones include Greenline Project - Yarra River, Level Crossing Removal Project, Queen Victoria Market Precinct Renewal, and South Melbourne Town Hall Restoration. The following details those expected to be most relevant.

Professional plan users can use the search below to filter and access additional projects.

Denotes AI-based impression for illustrative purposes only, not to be taken as definitive under any circumstances. Please follow links and conduct other investigations from the project's source for actual imagery. Developers and project owners wishing us to use original imagery please Contact Us and we will do so.

The employment environment in Melbourne shows above-average strength when compared nationally

Melbourne has a highly educated workforce with strong representation in professional services. Its unemployment rate is 3.7%, and it has seen an estimated employment growth of 5.8% over the past year. As of September 2025, Melbourne's unemployment rate is 1.0% lower than Greater Melbourne's rate of 4.7%.

Workforce participation in Melbourne is higher at 78.5% compared to Greater Melbourne's 71.0%. According to Census responses, 39.4% of residents work from home, potentially influenced by Covid-19 lockdown impacts. Key industries for employment among residents are accommodation & food, professional & technical services, and health care & social assistance. The area has a strong specialization in accommodation & food with an employment share 2.9 times the regional level, while construction is under-represented at 3.6% compared to Greater Melbourne's 9.7%.

There are 4.9 workers for every resident, indicating that Melbourne functions as an employment hub hosting more jobs than residents and attracting workers from surrounding areas. Between September 2024 and September 2025, employment increased by 5.8%, while labour force increased by 5.7%, leading to a decrease in unemployment of 0.1 percentage points. In comparison, Greater Melbourne recorded employment growth of 3.0%, labour force growth of 3.3%, with an increase in unemployment of 0.3 percentage points. Jobs and Skills Australia's national employment forecasts from May-25 suggest that national employment is forecast to expand by 6.6% over five years and 13.7% over ten years, with varying growth rates between industry sectors. Applying these projections to Melbourne's employment mix suggests local employment should increase by 7.0% over five years and 14.0% over ten years, although these are simple extrapolations for illustrative purposes and do not account for localized population projections.

Income figures position the area below 75% of locations analysed nationally by AreaSearch

According to AreaSearch's aggregation of latest postcode level ATO data released on 30 June 2023, Melbourne suburb had median income among taxpayers at $42,612 and average income at $67,203. These figures are approximately national averages, compared to Greater Melbourne levels of $57,688 (median) and $75,164 (average). Based on Wage Price Index growth of 8.25% since financial year 2023, estimated current incomes as of September 2025 would be approximately $46,127 (median) and $72,747 (average). From the 2021 Census, personal income ranks at the 61st percentile ($864 weekly), while household income sits at the 32nd percentile. Distribution data shows predominant cohort spans 31.5% of locals (23,238 people) in $1,500 - 2,999 category, aligning with regional levels where this cohort represents 32.8%. Housing affordability pressures are severe, with only 76.8% of income remaining, ranking at the 22nd percentile. Area's SEIFA income ranking places it in the 8th decile.

Melbourne features a more urban dwelling mix with significant apartment living, with a higher proportion of rental properties than the broader region

In Melbourne, as per the latest Census evaluation, houses comprised 0.1% of dwellings while other types (semi-detached, apartments, 'other' dwellings) accounted for 99.9%. In contrast, Melbourne metropolitan area had 67.9% houses and 32.1% other dwellings. Home ownership in Melbourne stood at 13.1%, with mortgaged dwellings at 13.6% and rented ones at 73.3%. The median monthly mortgage repayment was $1,800, lower than the Melbourne metropolitan average of $2,000. Median weekly rent in Melbourne was $381, compared to $390 in Melbourne metro. Nationally, Melbourne's mortgage repayments were below the Australian average of $1,863 while rents exceeded the national figure of $375.

Melbourne features high concentrations of group households and lone person households, with a lower-than-average median household size

Family households account for 37.5% of all households, including 5.7% that are couples with children, 25.6% that are couples without children, and 3.1% that are single parent families. Non-family households make up the remaining 62.5%, with lone person households at 47.2% and group households comprising 15.3%. The median household size is 1.7 people, which is smaller than the Greater Melbourne average of 2.6.

Melbourne shows strong educational performance, ranking in the upper quartile nationally when assessed across multiple qualification and achievement indicators

Melbourne's educational attainment is notably higher than national averages. Among residents aged 15+, 61.1% hold university qualifications, compared to 30.4% nationally and 33.4% in Victoria. University qualifications include bachelor degrees (37.7%), postgraduate qualifications (20.6%), and graduate diplomas (2.8%). Vocational pathways account for 18.3%, comprising advanced diplomas (11.0%) and certificates (7.3%).

Educational participation is high, with 42.2% of residents currently enrolled in formal education. This includes tertiary education (25.4%), primary education (1.7%), and secondary education (1.5%).

Transport servicing is high compared to other areas nationally based on assessment of service frequency, route connectivity and accessibility

Public transport analysis reveals 206 active transport stops operating within Melbourne as of 2021 Census data. These stops comprise a mix of train, light rail, and bus services. They are serviced by 92 individual routes, collectively providing 69,302 weekly passenger trips. Transport accessibility is rated as excellent, with residents typically located 95 meters from the nearest transport stop. As a primarily residential area, most residents commute outward. Walking is notably common at 25%, with 22% by train.

Vehicle ownership averages 0.1 per dwelling, below the regional average. A high 39.4% of residents work from home, which may reflect COVID-19 conditions as of 2021 Census data. Service frequency averages 9,900 trips per day across all routes, equating to approximately 336 weekly trips per individual stop. The accompanying map shows the 100 nearest stops to the location centrepoint.

Melbourne's residents boast exceedingly positive health performance metrics with very low prevalence of common health conditions across all age groups

Melbourne's health outcomes show exceptional results based on AreaSearch's assessment of mortality rates and chronic condition prevalence, with very low prevalence of common health conditions across all age groups. The rate of private health cover is approximately 53% of the total population (~39,394 people), slightly higher than Greater Melbourne's average of 56.7%.

Mental health issues and asthma are the most prevalent medical conditions in the area, affecting 6.9% and 5.4% of residents respectively. A total of 83.6% of residents report being completely clear of medical ailments, compared to 72.6% across Greater Melbourne. The area has a lower proportion of seniors aged 65 and over at 6.2%, with approximately 4,573 people, compared to Greater Melbourne's 15.1%. Despite this, health outcomes among seniors in the area are strong and align with national rankings.

Melbourne is among the most culturally diverse areas in the country based on AreaSearch assessment of a range of language and cultural background related metrics

Melbourne has a population where 60.2% speak a language other than English at home, and 70.6% were born overseas. Christianity is the main religion in Melbourne, comprising 25.6%. Buddhism makes up 10.2%, which is higher than the Greater Melbourne average of 4.2%.

The top three ancestry groups are Chinese (27.1%), Other (18.5%), and English (13.3%). Notably, Korean (2.1%) and Spanish (0.8%) are overrepresented compared to regional averages of 0.3% and 0.4%, respectively. Additionally, Indian ancestry is at 5.9%, higher than the regional average of 4.2%.

Melbourne hosts a very young demographic, ranking in the bottom 10% of areas nationwide

Melbourne's median age is 28, which is lower than Greater Melbourne's figure of 37 and Australia's median age of 38. The age profile indicates that individuals aged 25-34 are particularly prominent, comprising 39.8% of the population, while those aged 5-14 make up only 1.6%. This concentration of 25-34 year-olds is significantly higher than the national average of 14.4%. Post-2021 Census data reveals a rejuvenation trend, with the median age falling from 29 to 28 years. Key changes include an increase in the 15-24 age group from 24.5% to 27.1%, and a rise in the 25-34 cohort from 38.3% to 39.8%. Conversely, the 35-44 age group has decreased from 14.8% to 13.8%. Population forecasts for Melbourne in 2041 suggest substantial demographic changes, with the 25-34 cohort projected to grow by 37%, adding 10,733 residents to reach a total of 40,095.